Case Study - Charities must take reasonable steps to ensure that their responsible persons comply with their duties

Hillary is a member of the board of Hope Church and becomes concerned that Hope Church is operating whilst insolvent.

She seeks advice in this regard from Hope Church's accountant, who advises her that Hope Church is not insolvent.

Hope Church is later found to be insolvent and it is found that other members of the Hope Church board provided its accountant with inaccurate financial information.

However, by making inquiries regarding Hope Church's financial position from its accountant (who could reasonably be expected to provide this knowledge) Hillary is likely to be found to have taken reasonable steps to have complied with her duty to not allow Hope Church to operate whilst insolvent.